EADS Global Website - EADS Guidance for 2004

	Targets
EBIT*	expected at € 2.2 bn
Revenues	expected at € 32 bn
Free Cash Flow before customer financing	above the nine months level
Book-to-bill ratio (Orders/Revenues)	above 1.0

EADS has increased its 2004 EBIT* target to € 2.2 billion, up from € 2.1 billion previously. Its 2004 revenue target grew to € 32 billion (previously at € 31 billion), based on an average exchange market rate of € 1 = $ 1.23 (previously at $ 1.20).

Following recent improvements in market demand, EADS expects Airbus to deliver at least 315 aircraft in 2004 (2003: 305).

From January to September 2004, Airbus has already delivered 224 aircraft but during the last quarter Airbus deliveries will have a less favourable aircraft mix with a lower delivery proportion of A330/A340 family aircraft than in the first nine months. The A380 programme is on schedule for first flight in the first quarter 2005 and for entry into service in the second quarter of 2006.

EADS expects the Military Transport Aircraft, Aeronautics and Defence and Security Systems Divisions to contribute stronger results in the last quarter of the year.

EADS maintains its full-year target of receiving an order intake in excess of revenues.

In addition, EADS now forecasts full year Free Cash Flow (FCF) before customer financing will be above the nine months level exceeding the previous guidance of a “breakeven FCF”. EADS also expects full year customer financing to be much lower than had been expected.

* EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charges.

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